City manager presents Greeley’s FY2026 recommended budget; officials outline long‑term structural gap and staffing proposals

City Manager Raymond Lee and Director of Budget and Policy Nathan Mosley presented the city manager’s recommended budget for fiscal year 2026 to the Greeley City Council, highlighting investments in core services while warning that a multi‑year structural gap remains.

Nathan Mosley told the council the FY2026 recommended budget totals roughly $483.5 million in projected revenues across all funds and $507.4 million in total expenditures. He said charges for services and taxes are the largest revenue categories and that enterprise funds and general fund programs will comprise the largest spending shares. Mosley said the recommended budget uses one‑time carryover from 2024, departmental realignments and a transfer from the public improvements fund to bridge an identified general fund gap.

Mosley described a general fund budget gap of about $21 million composed of ongoing structural shortfalls, the extension of term‑limited positions and inflationary cost increases. He said proposed gap closures for 2026 include about $11 million of 2024 carryover, $3 million in departmental realignments and roughly $7 million transferred from the public improvements fund balance, noting the transfer reflects timing and reprioritization of capital project expenditures.

City Manager Raymond Lee framed the budget as preserving service levels and investing in employees while initiating a multi‑year effort to address structural deficits arising from revenue flattening after 2023. Lee and Mosley said the city faces uncertainty in sales tax collections and restricted state and federal grant access for homelessness and housing programs.

Highlights and proposed additions in the recommended budget included: - Total revenue across all funds: approximately $483.5 million; total expenditures: approximately $507.4 million; capital projects planned at about $65.3 million. - 17 proposed new full‑time equivalent positions: eight in utilities, six supporting an expanded Highway 34 regional transit route and three general‑funded positions (reclassification of a senior park technician to full time, an accessibility/compliance specialist tied to recent state requirements, and an Accountant II). Mosley told council the majority of the new FTEs are funded from dedicated sources such as utilities and transit. - Extension of 54 limited‑term positions into 2026 to preserve service levels; departments across the organization rely on these temporary staff, many tied to grants and short‑term programs. - Investments in sustainable infrastructure and mobility (stormwater staffing and water operations), public safety (Weld County dispatch and first‑responder health services), parks/recreation staffing, homelessness operations (including funding for an overnight shelter), and visitor analytics for economic development. - Fee schedule updates across several areas (e.g., fire pump and oil well inspection fee increases; some reductions in arena rental fees for certain weekend categories). Mosley said fee methodology work by an outside consultant will guide future adjustments.

Council discussion focused on the sustainability and tradeoffs of one‑time solutions and staffing additions. Members asked for clarity on the composition of the homelessness and housing budget (staff said roughly a 60/40 split in FY2026 between grants and local funding) and on the mechanics of the public improvements fund transfer used to help balance the general fund. Several councilors expressed concern about understaffing in public safety — the budget retains three over‑hire firefighters previously funded on a two‑year limited basis but does not fund the nine additional firefighters requested by the department — and requested early follow‑up next year should response times worsen.

Council members also pressed staff for details on the limited‑term positions and potential transitions to ongoing funding in future budgets. Mosley said the city will use multi‑year planning, vacancy management and potential 0‑based budgeting alternatives to address the structural gap and assess which limited‑term roles could convert to permanent positions.

Mosley said a formal public hearing and action on the FY2026 budget is scheduled for October, with first reading and public hearing on Oct. 7 and a second reading/adoption on Oct. 21. Staff offered follow‑up materials and committed to providing additional detail on FTE costs, term‑limited position totals and the underlying assumptions in the pro forma that supports the recommended budget.

Ending: The council praised the work on the recommended budget and scheduled additional two‑on‑two briefings and outreach before the formal public hearings in October. No formal vote occurred at the work session; adoption is scheduled in October.